What is a Turnaround Franchise Opportunity?
One man’s junk can be another man’s treasure, and this can sometimes be the case with resale franchises. There are many resales on the market today, and among them you can find what are called turnaround opportunities.
What’s a Turnaround?
A turnaround opportunity is a resale franchise that has been underperforming, or maybe even in bankruptcy, and the owner wants out. They are looking for a new franchisee to take the reins and save the business.
There are many reasons why a franchise might have failed. Maybe the owner discovered after opening that they weren’t suited for business ownership. Maybe they didn’t follow the business model to the letter. Maybe they didn’t have a real passion for the company. Maybe they are just burnt out after running the franchise for a number of years.
Whatever the reason is, the business is either on the brink of shutting down or already shuttered, and the owner needs to sell and recoup as much of their investment as possible. They will be selling at a low price because of this, and that is good news if you’re interested in buying.
Do You Have What it Takes?
There are franchisees out there that specialize in turnaround opportunities. Some of these guys have pulled hundreds of failing franchises out of the red and into the black, and have developed a number of turnaround-specific techniques and a wealth of know-how to make it work. But if you want to buy a turnaround franchise, you need to ask yourself a few questions first.
- Do you have a real passion for the business?
- Do you have enough capital to make the necessary improvements?
- Do you have experience as a small business owner?
- Are you willing to jump into a bad situation and make it good through a lot of hard work?
If you can honestly say yes to these questions, you could have what it takes to rescue a failing franchise.
How To Turn it Around
Most turnaround franchises aren’t doing well because they are either in a bad area, or have poor ownership. If the unit is in a bad area, you can correct this by shutting the store down and moving to a new location. It may be costly, but if you pick the right spot you can definitely recoup the money spent on the move.
If the problem was in the ownership, you’ll need to make it known from day one that you mean business and are enacting some real improvements. This could be anything from fixing a leaky roof, to buying new equipment, to introducing new operational procedures.
One of the first things you might have to do is give the store a facelift to make it more inviting to your customers. Investing in some improvements will go a long way in breathing new life into the franchise. It might turn out that all it takes is a little TLC and commitment to find success.
Take a look and find a great resale opportunity in your area on BeTheBoss.ca Franchise Resales.